McDavid out as buyer of AOL teams

LuisaBeltran

NEW YORK (CBS.MW) - AOL Time Warner confirmed Monday that talks to sell its Atlanta Thrashers hockey and Hawks basketball teams to Dallas businessman David McDavid were off.

Instead, AOL has clinched a "binding agreement" to sell the teams to an investment group that includes local partners. New York-based AOL
AOL
said it would unveil the unnamed local partners at a press conference Tuesday.

AOL declined to provide financial terms for the transaction.

"We are confident that the deal we will announce tomorrow is best for our company, for the teams and arena, for the city and for the fans," AOL said.

The media conglomerate said it continues to have the highest professional regard for McDavid, with which it worked in good faith for several months.

Last April, McDavid entered exclusive negotiations to buy the teams as well as operating rights to the Philips Arena, where both teams play. McDavid had been expected to pay $350 million to $400 million and a sale had been expected in June. See full story.

Talks lingered with hopes of a deal being clinched sometime throughout the summer.

McDavid, an auto magnate, owned car dealerships throughout Texas. A former minority owner of the Dallas Mavericks, McDavid had considered buying other basketball teams, including the Orlando Magic, the Vancouver Grizzlies and the Charlotte Hornets.

Career Sports Management President Lonnie Cooper advised McDavid in the transaction. A spokesman for Cooper declined comment.

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